Gambling Edition of Online Fraud 101

You were too afraid to ask questions about online gambling fraud. You’ve come to the right place. In this series of articles, we’ll look at the fundamentals of fraud, how it affects businesses, and how to protect yourself with cutting-edge technology.

Why Are Gambling Platforms Vulnerable to Fraud?

Gambling is inherently dangerous. It’s all part of the adventure. This risk, however, takes a different form for online gambling operators than it does for its players. It has to do with fraud and the number of ways that nefarious individuals can exploit flaws in their platform.

As the online gambling market continues to grow at a breakneck pace (it is expected to reach $1 trillion by 2021), operators become increasingly difficult targets. Today, we’ll look at the challenges they face and how they can protect their business in the long run.

The Most Common Forms of Gambling Fraud

While fraudsters are constantly coming up with new and inventive ways to exploit the system, there are a few common attacks to be aware of.

Multiple account fraud: this is the foundation for many gambling attacks. Fraudsters create dozens or hundreds of accounts with bogus credentials to tip the scales online in their favour. They could, for example, use it for:

Bonus abuse occurs when many fake accounts benefit from new signup bonuses, coupons, and other appealing offers. While these promotions are an excellent way to attract new players, they can quickly cause your platform to run at a loss if you distribute too many of them.Gnome is the practice of using multiple accounts to assist one player in winning. The other accounts are used to lose deliberately pocket all of the winnings and bonuses that come with it.Chip dumping is a common practice at the poker table. The idea, similar to gnoming, is to have multiple accounts join the same table to cheat the system and influence the results in favour or against one player.

Then there are the payment-related attacks. Because online casinos and gambling platforms are essentially digital wallets, accepting payments entails the risk of loss.

Stolen credit cards: Fraudsters can use stolen card information to top up their accounts, allowing them to pocket legitimate winnings.Chargebacks occur after the fraudsters have already topped off their accounts. They then request a chargeback from their banking or credit card provider, which results in a refund at the expense of the online gambling provider.Phone top-up fraud: If your online casino offers phone top-up, fraudsters have developed sophisticated methods of topping up their clients. They contact burner phone owners and trick them into topping up their balance, which is then used to fund their gambling accounts.

Finally, just as with traditional brick-and-mortar casinos, owners must be careful not to become a haven for money launderers. Any location that processes large amounts of money can legalize illegally obtained cash, and gambling establishments are a popular destination for criminals.

In conclusion

When monitoring and preventing fraud, gambling operators and online casinos do not have an easy task. Because they essentially function as digital wallets, they will encounter numerous risk factors, necessitating sophisticated tools to analyze and flag data.

However, as in many other industries, even a simple solution could be a huge boon. For example, it will assist them in avoiding income loss due to chargebacks, which can help increase their bottom line.

More importantly, their business is based on user trust and the development of relationships with the players. If they don’t think the platform is safe or fair, they have plenty of competitors to choose from. As a result, preventing fraud and demonstrating to players that you are working for them can only benefit your business in the long run.

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